Saturday, November 7, 2009
Coyotes' cutting ticket prices?
The Coyotes with a 10-6 record is competing very well considering financial troubles. But decisions arise to whether they should cut ticket prices and whether Phoenix the right economic place for a NHL team. The team hasn't made the Stanley Cup Playoffs since 2002 which even makes the die hard fans alittle disappointed. The team filed for bankruptcy back in May which is now owned by the NHL has the lowest attendance rate in the league, averaging 9,500 fans a game, according to ESPN. This is a huge drop from its 14,000 fans in 2009. To add on top of that Canadian billionaire Jim Balsillie tryed to buy the team and move it to Hamilton Ontario hoping to revamp the team but was denied by the U.S. bankruptcy court. Sports business experts and Coyotes fans believe Phoenix is less of an NHL market and more of a minor-league hockey market in terms of fans’ demand for tickets and interest in the sport. Phoenix also has a saturated sports market, with four major-league teams, Arizona State University sports, Cactus League and Fall League baseball, two Nascar races and two men’s professional golf tournaments. It is clear that they are going to have to lower there ticket prices to attract new customers and fans back if they ever hope to keep the team alive but that decision is yet to be announced or being taken into serious consideration. Only time will tell.
Adidas hopes that World Cup boost sales
Adidas a German sporting goods maker is hoping to pull sales out of the gutter for the next World Cup. Adidas CEO Herbert Hainer said he is looking to 2010, when the soccer World Cup is to be played in South Africa, for a boost in sales. The company reported a third-quarter revenue drop of 7 percent, as sales in its sports-performance division struggled. Herbert said that the reason why for this, is that people aren't spending the same due to the finical crisis. Adidas being the second largest sporting goods manufacturer next to Reebok, is hoping that the soccer frenzy boosts sales. By doing this Adidas hopes to outfit 12 of the teams and is predicting a 1.9 billion dollar boost in sales revenue. For the most part CEO Herbert Hainer is staying optimistic as the World Cup is right around the corner.
Friday, November 6, 2009
The most profitable sports team in the world
In 2005 the Washington Red Skins of the National football league were the most profitable sports team in the world. During this year the team managed to have a total revenues of 287 million dollars with an operating expense of 265 million dollars. The team managed to generate a total profit of 22 million dollars for there owner Daniel Snyder. Snyder purchased the team in 1999 for 750 million dollars. He has since managed to grow the team to have a total value of 1.3 billion dollars. The main move Daniel Snyder made to create such a successful business was in 1999 when he sold 20% of the team for 200 million dollars to expand his Fed-Ex field allowing for more people to view the game, also making it the largest football stadium in the NFL. Now the team has a waiting list of 75000 people to purchase tickets to view a game. There is however an option for the people who do not want to wait on the list, they are allowed to pay a 7500 dollar premium to jump the line for one seat.
The Price of a trophy.
There are many people in the world who's career is devoted to sports. Most if not all of them wish to one day carry the ultimate prize over there heads. But how much is the trophy really worth, cost wise. We can take for example the Stanley Cup of the NHL. Many hockey players all over the world have a different value on the Cup. But what is the real value of the Stanley Cup? Well we can look at its history. First off the Stanley Cup was bought as a decorative cup from London silversmith G.R Collis. It was purchased as a decorative bowl for $48.67 USD by Lord Frederick Stanley. He later decided that he wanted the cup to be more. He decided to award it as a prize for the top amateur hockey club in Canada. It was later given to the NHL to be awarded to the top team in the league. Since then it has been passed through the hands of many different hockey players and has the engravings of many names of the best players in the sport. Today the Cup has had many additions to it, to accommodate all the names that has been added. The cup has not recently been appraised, but is considered a priceless object. It is quite believable thought, that if the cup were to be sold it would sell for millions of dollars.
A Lingerie Football League?
Yes that's right, there is actually a football league in the states where women play 7 on 7 full contact football in rather reveling lingerie. They use hockey helmets instead of the larger and heavier football helmets, and as for their shoulder pads, well lets just say they are custom made for this sport. The rules are basically the same as the indoor leagues with a 50 yard field and four downs. There are no field goals just touchdowns. As of this year the LFL announced that it will have 10 franchises across the US, and the season will run from Sept.4, 2009 to Jan.29, 2010. The first LFL game played was in 2004 during the halftime of the Superbowl. It was a pay-per view event and has been an alternative televising tradition ever since. Because of this past success The LFL officially decided to become a league this year and bring the next generation of indoor football to life; although I'm not sure if men specifically watch this sport for their love of football. Whatever the case the LFL has found a niche in the entertainment market that no other sports league can relate to. As long as men will be men, the league's future looks bright.
Thursday, November 5, 2009
Most Profitable Sports Leagues
Now on to the top 5 sports leagues which generated the most in earnings.
#5
National Basketball Association (NBA): Profit of $207 million
According to Forbes.com, the NBA generated about $207 million in 2006, making it the third most profitable of the big four American pro sports. In 2005, NBA sponsors contributed a total of $360 million. Merchandise sales have increased to $2.1 billion. The league is in a six-year, $4.6 billion television deal, with 15% of that cash coming from overseas.
#4
Formula One: Profit of $435 million
Formula One Administration had a pre-tax profits of $435 million and those results sent the circuit fly past the totals racked up in 2004 which was just $320 million on. Expansion in overseas such as Turkey, China and Bahrain were the reason for the improved finances and gain in profit.
#3
Major League Baseball: Profit of $496 million
In 2004, MLB posted an overall operating loss of $57 million. But in 2006, MLB collectively earned a record operating income of $496 million and according to Forbes.com it is second among the big four American sports leagues. This success was due to ticket prices of being only $22 which led to a gain of total of $1.9 billion. Baseball rivalries has been a factor in generating income and and a great example would be the rivalry between the New York Yankees and the Boston Red Sox.
#2
English Premier League (EPL): Profit of $513 million
Soccer should be another example of the rich getting even richer, especially in Europe. The English Premier League profits doubled to $513 million next season, vaulting soccer ahead of baseball. The sport’s finances by the advisory firm Deloitte said a new TV deal would bring in an extra $592 million of revenue and other revenue increases could bump the overall profits to $3.5 billion.
#1
National Football League: Profit of $984.5 million
According to Forbes.com, the operating income of the NFL was $984.5 million in 2005. The average NFL team is worth $898 million and current deals with NBC, FOX, ESPN, and CBS will pay the league an average of more than $3 billion a year over the next five years. A typical NFL team makes about $5 million off merchandise sales and totals to $3.2 billion in 2006.
#5
National Basketball Association (NBA): Profit of $207 million
According to Forbes.com, the NBA generated about $207 million in 2006, making it the third most profitable of the big four American pro sports. In 2005, NBA sponsors contributed a total of $360 million. Merchandise sales have increased to $2.1 billion. The league is in a six-year, $4.6 billion television deal, with 15% of that cash coming from overseas.
#4
Formula One: Profit of $435 million
Formula One Administration had a pre-tax profits of $435 million and those results sent the circuit fly past the totals racked up in 2004 which was just $320 million on. Expansion in overseas such as Turkey, China and Bahrain were the reason for the improved finances and gain in profit.
#3
Major League Baseball: Profit of $496 million
In 2004, MLB posted an overall operating loss of $57 million. But in 2006, MLB collectively earned a record operating income of $496 million and according to Forbes.com it is second among the big four American sports leagues. This success was due to ticket prices of being only $22 which led to a gain of total of $1.9 billion. Baseball rivalries has been a factor in generating income and and a great example would be the rivalry between the New York Yankees and the Boston Red Sox.
#2
English Premier League (EPL): Profit of $513 million
Soccer should be another example of the rich getting even richer, especially in Europe. The English Premier League profits doubled to $513 million next season, vaulting soccer ahead of baseball. The sport’s finances by the advisory firm Deloitte said a new TV deal would bring in an extra $592 million of revenue and other revenue increases could bump the overall profits to $3.5 billion.
#1
National Football League: Profit of $984.5 million
According to Forbes.com, the operating income of the NFL was $984.5 million in 2005. The average NFL team is worth $898 million and current deals with NBC, FOX, ESPN, and CBS will pay the league an average of more than $3 billion a year over the next five years. A typical NFL team makes about $5 million off merchandise sales and totals to $3.2 billion in 2006.
Least Profitable Sports Leagues
Let's take a look at the top 5 sport leagues which generates the least amount of earnings ever since it has been established.
#5
Professional Bowlers Association (PBA): Loss of $30 million
In the late 1990s, PBA was struggling to survive in the sports industry and had to look for alternatives to keep the ball rolling. In 2000, pro bowling received help from three former Microsoft executives who bought the PBA in hopes of not only to generate profit, but also to create a spark in the Bowling industry once again. The investent has yet to pay off, and the owners lost about $30 million during their six year ownership.
#4
Xtreme Football League (XFL): Loss of $46.9 million
When XFL made it's first apperance in the world of sports, many people tuned into it just because it was under the operations of Vince McMahon. McMahon well known for his ownership of World Wrestling Entertainment (WWE) tried to provide his own version of the NFL. However it didn't succeed, and as a result, attendance was always below the 10% targeted goal and the loss of the $46.9 million forced the XFL to close it's short-lived fiasco.
#3
Women's United Soccer Association (WUSA): Loss of $100 million
WUSA was founded in 2001 and was the world's first league of full-time pro women's soccer players. It commenced with eight teams in April 2001 but however, the league suspended operations on September 15, 2003, at the end of its third season. The failure was reflected on the tv ratings and attendance never met it's expectations. The expenses were much greater than the leagues budget of $40 million for a five-year period. Team owners in WUSA had to invest more than $100 million to fund the league.
#2
Women's National Basketball Association (WNBA): Loss of $120 million
The WNBA has been around for more than 10 years, but it has never been able to achieve it's goals of attracting viewers and investors. Its chief financial backer is the NBA, which invests $12 million into the WNBA every year. The league started with eight teams, another eight entered, three clubs disbanded, two moved to different locations, and lastly one team was added.
Major League Soccer (MLS): Loss of $350 million
In November 2004, Adidas announced that it would invest $100 million into MLS over a 10-year period to become the league's key sponsor. There are a total of 15 teams in the league which are divided into Eastern and Western conferences. Western conference consisted of 8 teams and Eastern has 7. According to a 2004 article in BusinessWeek MLS has lost more than $350 million since opening day in 1996. In 2004, BusinessWeek reported that just one team, the Los Angeles Galaxy, had ever made an operating profit as of now.
#5
Professional Bowlers Association (PBA): Loss of $30 million
In the late 1990s, PBA was struggling to survive in the sports industry and had to look for alternatives to keep the ball rolling. In 2000, pro bowling received help from three former Microsoft executives who bought the PBA in hopes of not only to generate profit, but also to create a spark in the Bowling industry once again. The investent has yet to pay off, and the owners lost about $30 million during their six year ownership.
#4
Xtreme Football League (XFL): Loss of $46.9 million
When XFL made it's first apperance in the world of sports, many people tuned into it just because it was under the operations of Vince McMahon. McMahon well known for his ownership of World Wrestling Entertainment (WWE) tried to provide his own version of the NFL. However it didn't succeed, and as a result, attendance was always below the 10% targeted goal and the loss of the $46.9 million forced the XFL to close it's short-lived fiasco.
#3
Women's United Soccer Association (WUSA): Loss of $100 million
WUSA was founded in 2001 and was the world's first league of full-time pro women's soccer players. It commenced with eight teams in April 2001 but however, the league suspended operations on September 15, 2003, at the end of its third season. The failure was reflected on the tv ratings and attendance never met it's expectations. The expenses were much greater than the leagues budget of $40 million for a five-year period. Team owners in WUSA had to invest more than $100 million to fund the league.
#2
Women's National Basketball Association (WNBA): Loss of $120 million
The WNBA has been around for more than 10 years, but it has never been able to achieve it's goals of attracting viewers and investors. Its chief financial backer is the NBA, which invests $12 million into the WNBA every year. The league started with eight teams, another eight entered, three clubs disbanded, two moved to different locations, and lastly one team was added.
#1
Major League Soccer (MLS): Loss of $350 million
In November 2004, Adidas announced that it would invest $100 million into MLS over a 10-year period to become the league's key sponsor. There are a total of 15 teams in the league which are divided into Eastern and Western conferences. Western conference consisted of 8 teams and Eastern has 7. According to a 2004 article in BusinessWeek MLS has lost more than $350 million since opening day in 1996. In 2004, BusinessWeek reported that just one team, the Los Angeles Galaxy, had ever made an operating profit as of now.
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